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A. Regular Membership
1. Qualifications
Membership to the San Mariano farmers Agripreneurs
Association is open to all bonafide residence of San Mariano,
Must be committed to undertake
incumbent upon the members.
Must complete the
Seminar (PMES);






Must use or anticipate to use the services of the association

Must be willing to serve in the Association
2. Duties and Responsibilities
Payment of one hundred pesos (P 100.00) membership fee;
Subscription of twenty (20) minimum shares with par value of
Five Hundred Pesos (500.00) per share.
Payment of the substance capital for a period of three months,
and to actively participate in the capital build-up and savings
of the association;
Regularly patronize the business of the Association
Attend the regular and special membership meetings and
general assembly;
Participate in the decision making process during membership
Obey the rules and regulations , and policies of the

To serve when elected;

To pay or settle his obligations; and

Promote the aims and purpose of the Cooperative.

3. Rights

To recommended policies for the growth and improvement of

the association

To receive limited interest on capital contribution (dividend);

To inspect and examine the books of accounts, the minutes
books and other books during office hours;
To vote and be voted upon for any position within the
To receive accurate reports and correct information; and
To enjoy other rights as may be due to a regular member as
provided for in the Articles of Cooperative and by Laws of this
Cooperative based on existing policies , rules and regulations
set forth by the Board of Directors and the General Assembly.
4. Privileges
Avail of the services of Cooperative without any discrimination
whatsoever upon compliance with the conditions and
requirements thereof;
To be provided with efficient services;
To be treated well by people handling the business ; and
To receive patronage refund and other incentives.
5. Limitations/prohibitions
No member shall be entitled to more than one vote;
No proxy voting shall be allowed;
Shall not own or hold more than twenty percent (20%) of the
authorized capital of the Cooperative ; and
Delinquent member-borrower cannot run for any elective
position, nor hold any appointive position until such time that
his obligation is settled.
B. Associate Membership
1. Qualifications

Not yet duly complied with all the qualifications of a regular

Applicant for associate membership must be willing and
interested to abide with the Articles of Cooperative, By-laws
and policies of the Cooperative consistent with the existing
rules and regulations of the Cooperative Code of the
Philippines; and
Must be willing and interested to participate in the activities
of the Cooperative;
2.Duties and Responsibilities
He must duly accomplish/fill-up the required Membership
Application Form which shall be submitted to the Cooperative
through his guardian. The application shall be decided upon by
the board of Directors and notice on the Board action on the
result of his application shall be served to the applicant by the
Secretary of the Association
Membership fee of fifty pesos (50.00) shall be paid upon filing
of Membership Application and initial share capital/savings of
two hundred pesos (P200.00) shall be paid when such
applicant is accepted;
He must pay/deposit his share capital/savings within a period
of three (3) months upon confirmation by the Board of
Directors. This may be done through his/her guardian in case
of minors

shall promote the association.

3. Rights
To receive limited interest on capital (dividends) on his paid-up
share capital;
To receive valid reports and correct information on association
To receive and enjoy other rights which may be provided to an
associate member set forth by the General Assembly, or by the
board of Directors;
Upon considerable number of associate members, the Board of
Directors may allocate and requires to elect among themselves
their representative to the Board of Directors, and to sit as an
ex-oficio member of the Board.
4 .Privileges
To receive incentives due an associate members;
To receive quality and efficient association services without
discrimination whatsoever upon compliance with the
conditions and requirements thereof;

To apply and be granted with loan and equivalent to his paidup share capital; and
An associate members may be granted three times of his paid
capital build-up ,Provided; he will issue Post-Dated Check
equivalent to the full payment of his total obligation.
5. Limitations/Prohibitions
He cannot vote nor be voted upon to hold any position in the
No patronage refund shall be due/provide to an associate
member; and
Shall not own or hold more than twenty percent (20%) of the
authorized capital of the Cooperative.
C. Forms of Separation as a Member
Transfer or residence outside the municipal area of operation

Voluntary Termination of Membership

Involuntary Termination of Membership
1. Qualifications
The member should be good standing;
He shall voluntarily signify interest to continue his
membership before his
separation and must submit a duly notarized application;
He must be committed to undertake the duties and
responsibilities of a member;
He must be advocate of association;
The member- borrower should settle at once his outstanding
obligation with the association before his retirement
This policy shall take effect on the ____ day of_______________,
2. Voluntary Withdrawal of Membership
Any member who voluntarily desires to withdraw his
membership shall submit a written application to the Board of
Directors. The Board of Directors shall be given thirty (30)
days to decide on the matter;
Member who voluntarily terminates
his membership shall
settle all financial obligations in the association;
The withdrawing member is entitled to a refund of his share
capital contribution and other interests due him from the
association. This shall be paid upon approval by the Board of
Directors; and

All benefits and incentives, including dividend shall be

forfeited if the member terminates his membership prior to
the distribution of incentives.
3. Termination of Membership by the Board of Directors
Any member maybe terminated from the association on the
following grounds:
Willful violation of the Articles of Cooperative and By- Laws;
Non-compliance with association policies;
Engaging in the business which is in conflict with the
association; and
Damaging the goodwill of the association.
Members who are inactive may be terminated after due
process of law.

The death, insanity, or insolvency of a member shall be

considered an automatic termination of membership;
Under extreme cases where a member violates the policies and
if found necessary, the Board of Directors may terminate his
membership; and
In case the Capital Build-Up a member is not enough to cover
the loan obligation, the Board of Directors shall seek the
service of a lawyer to make remedial measures on how to
ensure collection.
4. Membership Application
The application for membership shall be made by writing on a
form provided for the purpose and shall be represented to the
Board of Directors for action;
Payment for one hundred pesos (P100:00) membership fee
which amount shall not be returned to the applicant in case in
disapproval to defray expenses incurred during the processing
and deliberation of the application.
A certificate of completion of training on Pre-Membership
Education Seminar (PMES) shall be presented upon payment of
share capital if the application is approved or accepted by the
Board of Directors; and
The applicant shall subscribe at least twenty (20) initial
shares equivalent to Ten Thousand pesos (P10,000) with a par
value of five hundred pesos (P500) per share. This shall be
paid within five (5) years from the date of membership.


The San Mariano farmers Agripreneurs association offers
the following services that can be availed by the members:
A. Credit/Lending/Re-lending

1. Regular loan

Loanable Amount
Minimum amount equal to the members paid-up
Maximum loanable amount equivalent to three
hundred percent (300%) of the paid-up capital of each

Terms of Payment
Six (6) months
Twelve (12) months
Eighteen (18) months
Twenty four (24) months


Interest of one and seventeenth percent (1.5%) per

Service fee of one and a half percent (1.5%)
Loan Redemption fund of one and a half (1.5%) percent
Capital Build-Up of one and a half percent (1.5%)
percent of the total loan amount
Savings deposit of one half percent (0.5%) of the total
loan amount
One forth percent (0.25%) for other charges
2. Short Term Loan

Minimum of One thousand (1,000.00) depending on the

paid-up share capital
Maximum of five thousand pesos (P5,000.00) depending
on the paid-up share capital

Terms of Payment

One (1) month

Three (3) months to pay

Loanable Amount


Interest of one and seventeenth percent (1.50%) per

Service fee of one and a half percent (1.5%)
Loan Redemption Fund of one and a half percent (1.5%)
One forth percent (0.25%) for other charges

5. Micro-Finance

Loanable Amount

Minimum of five thousand pesos (P5,000.00)

Maximum of Ten thousand pesos (P10,000.00) but based
on project proposal submitted by the member-borrower

Terms of Payment

Six (6) months

Monthly or quarterly equal amortizations

B. Deposits
Savings Deposit
(Treated similar with that of the paid-up share capital)
C. Mortuary Fund Aid
One hundred pesos (P100) is deducted from the paid-up share capital of
each member to be given as mortuary aide to a decreased member. This will
be issued to his legal beneficiary or beneficiaries or to his nearest kin; Provided
that, the person receiving the amount is equipped with an authorization from
the beneficiary/beneficiaries of the deceased member.

A. Share Capital Subscription, Credit Services and Deposits
1. Share Capital
1.1 Minimum Subscription
1.1.1 The minimum share capital subscription shall be twenty (20)
shares equivalent to ten thousand (P10,000.00) at five hundred
pesos (P500.00) par value per share payable within three (3)
months from date membership.
1.1.2 Any member who have not subscribed and paid the minimum
share capital within three (3) months shall be considered
1.2 Fines Unpaid Subscribed Share capital

1.2.1 Subscribed share capital which is not paid within a period of

three (3) months shall be charged with a fine of one percent
(1%) per month of the unpaid subscribed capital to be deducted
from his paid-up share capital.
1.2.2 The Cooperative through its Manager shall issue reminder or
notice to the member to pay his unsubscribed share capital. If
the member failed to comply despite three notices, the Board of
Directors shall declare such as delinquent member.

2. Capital Build-up Formation

2.1 Thirty percent (30%) of the patronage refund and dividend
earned by the member shall be added to the Capital Build Up
(CBU). However, upon request of the general membership in a
general assembly, a different percentage may be adopted.
2.2 One and a half percent (1.5%) of the loanable amount will be
deducted from all regular loans to be credited as capital build
2.3 Profits from other sources of income will also accrue as capital
build up.
2.4 A member may also increase his capital build up by paying
directly to the Treasurer.
3. Credit
3.1 Qualifications of a Borrower
Any member who has paid-up the minimum share capital
Any member who have been in the association for not less
than three
months; and
With good credit standing.
4. Re-structuring

Restructuring of delinquent loan shall be made only once.

5. Loan Processing
Any member who will avail loan shall secure application from at the
association office.
Old borrowers shall secure loan slip showing the status of loan balances.
Processing and approval of loan application shall be on a first-come-first
serve basis
The application form shall be duly signed by the signatories and must be
personally filed by the applicant to the association office.
The loan shall be personally received by the member-borrower, except in
case of emergency where the authorized representative can release the loan
from the Treasurer.


The Credit Committee shall determine the credit status of the loan
applicant transfer.
7.Collection of Unpaid/Overdue Loans
Send three demand letters through registered mail with return card at least
three times every
after fifteen (15) days to be signed by the Legal
Conduct personal collection by the Credit Committee (CRECOM)
If all the administrative remedies are exhausted by the association and the
member-borrower failed to settle his account, the Cooperative has the right
to seek the assistance of a legal counsel for filing of the case in court;
The paid-up share capital shall not be used to pay delinquent loan. The past
due loan shall be paid by the delinquent member-borrower. The balance shall
be collected and shall earn an interest of one and a half percent (1.5%) per
month and a surcharge of two percent (2%) per month; and
Any member who failed to pay his monthly amortization shall be charged
with two percent (2%) surcharge per month.
D. Allocation of Net Surplus and Other Benefits/Incentives
1. Net Surplus
From the annual net surplus, ten percent (10%) shall be allotted for
general reserve fund (GRF); five percent (5%) for optional fund
(OF/LBF);five percent (5%) for association education and training fund
(CETF) and one percent (1%) for loan losses fund (LLF).
The computation of dividend and patronage refund shall be based on
the result of External Audit. Seventy percent (70%) will be distributed as
cash dividend and patronage refund. Thirty percent (30%) will retained in
the association to be added to the share capital or saving of the
respective members.
In case the Cooperative will earn above thirty percent (30%) return on
investment (ROI), THE Board of Directors may decide to increase the
distribution rate of dividend and patronage refund.
Further, the patronage refund will be distributed into patronage on loan
services which is seventy percent (70%) and thirty percent (30%) for
patronage for canteen services.
No dividend shall be allocated to the decrease member even if the paidup share capital not yet withdrawn by his legal heirs.
2. Benefits/Incentives
Incentive is cash or in kind shall be distributed to qualified members.
Benefits due to delinquent member during delinquency period shall be
forfeited in favor of the Cooperative for those inactive members, forfeiture of
benefits shall be determined by the Board of Directors.
3 .Compromise Agreement
A compromise agreement is a remedy to settle the account or obligation of a
delinquent member-borrower in the following instances:
he member-borrower had failed to settle his total account or obligation when
it falls due and
When the failure of collection on the due and demandable accounts or
obligations is due to the fault or negligence of the Cooperative officer
concerned; and

When upon findings by the Committee on Settlement of Due and

Demandable Accounts or Obligations recommends such remedy.
4 .Period of Amicable Settlement
The period of amicable settlement shall be one year from the time the total
account or obligation is due and demandable.
Creation and Composition of Committee on Settlement of Due and
Demandable Accounts or Obligations
The Committee on Settlement of Due and Demandable Accounts or
Obligations shall be created and composed by two members and one
The Chairperson of the Credit Committee shall serve as Chairperson, the
Chairperson of the Audit Committee and the Manager shall serve and
member; and
The Committee Officers term shall be in conjunction to their regular term as
they are elected appointed.
5. Nature of Settlement
In any case, the settlement of due and demandable accounts or obligations
shall serve the best interest of the association.
6 .Action after Failure and Success of Amicable Settlement
The success of amicable settlement shall extinguish such due and
demandable accounts or obligations, but in no case of failure, the settlement
shall be forwarded to other legal remedy that shall be determined by the
Board of Directors.
7. Final Resolution on Settlement of Due and Demandable Accounts or Obligations
Upon submission by the Committee on Settlement of Due and Demandable
Accounts or Obligations of the generated options and recommendations, the
Board of Directors shall promulgate resolution. Such resolution shall be
furnished to the parties concerned for implemention, or further action as the
case may be.

A. Quorum
At the annual General Assembly, or Special Assembly, twenty-five
percent (25%) of the total membership in good standing who are entitled to vote
shall constitute a quorum.

B. Qualifications of a Voter
Has paid the required membership fee
Is not delinquent in the payment of his capital contributions and other
Has not violated any provision of the Articles of Cooperation, By-Laws,
policies, rules, regulations, circulars, memoranda and other issuances of the
San Mariano farmers Agripreneurs Asociation.
Has completed the prescribed Cooperative seminar; and
Must be a member in good standing.

C. Qualifications of Candidates for Election as Officers

Must posses all the qualifications of a voters;
Must have time and willingness to serve
Must be honest, dedicated and committed to the attainment of the vision,
mission, goals and objectives of the San Mariano farmers Agripreneurs
Candidate seeking for the position of Board of Director must have at least
served as officer on any of the committees; and
Must have filed his application of Candidacy at least fifteen (15) days before
the annual General Assembly (AGA).
Any member of the Election Committee who desires to run for any position
must resign fifteen days before the start of filing period the BOD shall appoint
an interim member of the Committee who will serve as such until the new set
of officers are elected.
D. Disqualifications
Having conflicting interest with the business of the Cooperative;
Having been absent for three (3) consecutive Board of Directors and/or
Committee meetings without being excused as declared by the Board;
Having been convicted of any crime involving moral turpitude, gross
negligence or misconduct in the performance of his duties or found culpable
in any administrative case involving such offenses;
Having been associated with any past anomalies in the association
Having been classified as delinquent member; and
Present inactive and delinquent members are qualified to vote, but are not
qualified to nominate and to be nominated.
E. Period of Filing Application for Candidacy
Filing of application of candidacy is at least fifteen calendar days before the
Annual General Assembly; and
Closing of acceptance of application is five oclock (5:00) in the afternoon of
the last day of filing.
Screening, Approval and Confirmation of Application of Candidacy
The Election Committee shall screen the application for candidacy based on
the qualifications and disqualifications approved by the Board; and
Certificate of Confirmation of candidacy shall be signed by Chairperson of the
ELECOM and be issued to the candidate.
F. Manner of Voting/Election
No member shall be entitled to more than one vote;
No proxy voting;
Controlled ballots bearing serial number will be disturbed upon registration to
the qualified voter;
Voting shall be done in secret balloting and at the designated voting area set
by the Election Committee;
The signed stub of the ballot shall be given to the ELECOM member before
dropping it in the ballot box;
At exactly nine oclock in the morning (9:00AM), the ballot box shall be close.
The ELECOM shall verify if the number of stub detached if equal to the ballots
in the box.

Once canvassing is finished/complete, the ELECOM, together with the

canvassers from the four districts of DAR Isabela who accredited by the
ELECOM, shall affix their signature in the summary result of election;
The Chairperson of the ELECOM or his duly authorized member shall
announce result of the election and shall proclaim the winning candidates;
A separate for elections or Board of Directors, and another for each
committee shall be conducted, but in no way shall a qualified member be
nominated more than two times in the same election period, or Annual
General Assembly (AGA).
The Board of Directors and committees members, except Education
Committee, are elected by the General Assembly during the conduct of Annual
General Assembly. The Vice-Chairperson of the Board acts as the chairperson of the
Education Committee (EDCOM) and the other two members are appointed by the
Board of Directors. The Vice-Chairperson recommends from among the membership
who are qualified to act as member of the EDCOM. The basis of their appointment
depends on their work experiences related to organizational development.
.Continuous education for officers, staff and members shall be extended
All membership applicants must complete the Pre- Membership Education
Seminar (PMES). A group of five (5) applicants may constitute a batch of
Pre-Membership Education Seminar (PMES) shall be conducted by the
Education Committee (EDCOM).
All officers and members must complete the Ownership Seminar and other
membership enhancement seminars deemed important to maintain and
sustain the spirit of solidarity and cooperativism.
Qualified officers, and staff will be allowed to attend and participate in
appropriate training courses, cooperative-related activities and specialized
training courses to enhance knowledge and skills;
Qualifications of participants are subject the criteria set force by the
Education Committee (EDCOM) and shall be approved by the Board of
Education and training program shall be formulated by the Education and
Training Committee and shall be approved by the Board of Directors;
Training/Seminars to be conducted or sponsored by the Cooperative shall be
supported by a training design duly signed by the Treasurer and Manager,
and approved by the Board of the Directors;
All training course/seminars are subject to the availability of the Cooperative
Education and Training Fund (CETF); and
.Outside trainers for specialized training courses/seminars shall be paid an
honorarium to be determined by the Board of Directors.

A. Basic Policies

The welfare of the personnel is the prime concern of the SMFAA. To

this end, SMFAA shall see to it that the general well being of staff is enhanced and
protected under rules and regulations, consistent with greater interest of the
B. Recruitment
The SMFFF shall make announcement and invite applicants whenever
vacancy exist in any position.
Application Requirements
All Applicants are required to submit the following documents:
2.1 Letter of applicant
2.2 Transcript of academic records

2.3 Bio-data with 2x2 pictures

2.4 Medical examination results conducted by a government
2.5 Duly notarized certificate of good moral character
2.6 Barangay Clearance

Position Title


Report To

The Board of Directors


All Management Staff of the Cooperative

Position Objective
To Contribute to the growth and viability of the Cooperative
through the effective and efficient management of the day to day operation
of the Cooperative consistent with the operating policies, systems and
procedures promulgated by the Board of Directors, or the General Assembly.
Specific Tasks
A. Planning
1. Sees the preparation of annual plans and budget and submit these to
the Board of Directors for recommendation endorsement by the General
Assembly; and
2. Identifies and recommends to the Board of Directors opportunities for
expansion that will further promote the Cooperatives program and services.
B. Organizing

1. Sees the formulation of operational policies and recommends these to

the Board of Directors for approval.
2. Sees the formulation of operating guidelines; development systems and
procedure based on approval policies by the Board of Directors and General
3. Recommends creation or abolition of position/job items to the Board of
Directors when deemed necessary; and
4. Hires/terminates employees based on the approved policies of the Board
of Directors, or General Assembly, and existing Labor Laws.
C. Directing
1. Oversees Cooperatives program and service based on approved policies,
guidelines, systems and procedures;
2. Directs action of employees and evaluate their performance; and
3. Prepares periodic operations reports required by the Board of Directors
and General Assembly.
D. Controlling
1. Ensures availability of financial statement for the review of the individual
members, elective and appointive leaders and General Assembly;
2. Ensures proper maintenance and preservation of records, assets and all
properties pertaining to operation of the Cooperative;
3. Identifies and reports to the Board of Directors the training needs of the
employees, as well as recommends appropriate interventions (such as
training), to address these;
4. Exercise disciplinary measures for poor performance and/ or violations of
the Cooperative policies, rules and regulations.
E. Networking
1. Establishes linkages with the other cooperatives and allied organizations;
2. Recommends to the Board of Directors affiliation to cooperative
federations or similar organization.
F. Others

1. Acts as loan officers in the absence of a loan officers; and

2. Performs other related tasks as may be assigned by the Board of
Directors and General or Special Assembly.

Position Title


Report To


Job Purpose
To ensure orderly maintenance and update of books of
accounts, and timely submission of financial reports and analysis.
Duties and Responsibilities
1. Maintains and update General ledger (GL) of the Cooperative.
2. Keep tract/verifies all receipts and disbursements.
3. Prepares financial statements regularly.
4. Prepares annual budget and work plan on financial aspect.
5. Adheres to prescribed financial systems and procedures.
6. Gives suggestions to the Manager pertaining business operations
7. Prepares/Performs other tasks that may be assigned from time to
time by the Manager.
Standard Evaluation
Maintained and updated General Ledge
Verified official receipts and disbursement vouchers
Prepared and updated financial statements
Prepared accurate financial statements and other financial report
Prepared and submitted financial plan
1. Must be a Bachelor of Science in Commerce, major in accounting
graduate, or a CP
2. Must be at least one year work experience related to accounting

3. Must know how to analyze and interpret financial statement

4. Must have good human relations
5. Must posses cooperative values and attitude
6. Must be Proficient in oral and written communications
To manifest your conformity to the above duties and
responsibilities, please affix your signature on the space provided herein

Position Title
Report To



Duties and Responsibilities

1. Maintains and updates General Journal and subsidiary.
2. Computes interest on share capital (dividends) and patronage
3. Processes loan application.
4. Maintains files of all cash receipts and vouchers; documents, such
as Post-Dated Checks, and Time Deposit Certificate/Contract.
5. Records/Posts, files and maintains Cooperative records/documents
and other properties.
6. Performs other tasks assigned from time to time by the Manager.
Standard Performance Evaluation
Updated Individual and Loan Deposit Ledger (IDLL)
Updated General Journal (GJ) and other subsidiary ledgers
Filed cooperative records
1. Must be a Bachelor Science in Commerce, major in accounting
2. Must have at least one year work experience related bookkeeper
3. Must be proficient in written and oral communications

4. Must have cooperative values and attitude

5. Must have good interpersonal relationship
6. Must be a good typing
7. Must be a computer literate
8. Must know how to accept challenges